Allowed

State Bank of India v. Sh. Budh Singh

DRT22 Jul 2025OA/41/2025

Case brief

AI extract

What is this about?

The Tribunal allowed a recovery application filed by State Bank of India against Sh. Budh Singh for the outstanding loan amount. The defendant appeared ex parte. The Tribunal granted a uniform simple interest rate of 8% per annum and ordered recovery from mortgaged properties or personal assets.

What did the court decide?

Recovery of Rs. 28,25,441.00p with simple interest @ 08% p.a., enforceable through sale of properties or attachment of assets.

State Bank of India versus Sh. Budh Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.41/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.01.2025

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DATE OF DECISION: 22.07.2025

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State Bank of India, a body corporate, constituted under the State Bank of India Act, 1955 and having Central Office at Madam Cama Road, Nariman Point, Mumbai and one of its Local Head Office at Sector-17-A, Chandigarh and one of its branch at Killianwali, Tehsil Malout, District Sri Muktsar Sahib, Punjab through its Branch Manager Sh.Sombir Singh.

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……..Applicant Versus

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Sh. Budh Singh S/o Sh.Kartar Singh R/o Village Ghumiara, Tehsil Malout, District Sri Muktsar Sahib, Punjab.

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Also at: Village Ghumiarwala, Tehsil Malout, District Sri Muktsar Sahib, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Pankaj Beri, Advocate for the applicant (through VC) Defendant already ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs.28,25,441.00p (Rupees Twenty Eight Lacs Twenty Five Thousand Four Hundred Forty One Only). The Original Application has been filed through Sh. Sombir Singh, Branch Manager, o f the applicant, who is competent to institute the Original Application in terms of Gazette Notifications published in the Gazette of India dated 26.09.1959, 26.08.1972 and 02.05.1987 issued under Regulations no.76 & 77 of State Bank of India General Regulations framed in exercise of the powers conferred by Sub section

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OA/41/2025 STATE BANK OF INDIA V/S SH. BUDH SINGH

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3 of section 50 of the State Bank of India Act, 1955 with the previous sanction of the Central Government.

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The brief facts of the OA that the defendant had approached the applicant for the enhancement of existing KCC Limit Rs.10.50 Lacs and Debt Swap of Rs. 1.00 Lac (Total facilities of Rs.11.50 Lacs) to Rs.19.50 Lacs vide Loan Application dated 24.06.2016, which is Annexure A1 to this OA.

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The applicant sanctioned the KCC Limit of Rs.19.50 Lacs vide Letter of arrangement dated 24.06.2016, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgage his immovable properties i.e. total land measuring 64K-00M situated at Village Ghumar Wala, Tehsil Lambi, District Sri Muktsar Sahib, Punjab vide Declaration u/s 4(1) bearing no. 420 dated 24.06.2016, which is Annexure A5 to this OA. Documents executed:- Undertaking dated 24.06.2016, which is Annexure A3 to this OA; Hypothecation agreement dated 08.08.2016, which is Annexure A4 to this OA; Notice dated 23.12.2024, which is Annexure A6 to this OA and Statement of account, which is Annexure A7 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.28,25,441.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 18.07.2025.

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OA/41/2025 STATE BANK OF INDIA V/S SH. BUDH SINGH

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In support of the OA, affidavit of Sh. Sombir Singh, Branch Manager, State Bank of India, h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel (through Video Conferencing) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A7 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,25,441.00p (Rupees Twenty Eight Lacs Twenty Five Thousand Four Hundred Forty One Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a.along with 2% p.a. penal interest with half yearly rests from 22.12.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in

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OA/41/2025 STATE BANK OF INDIA V/S SH. BUDH SINGH

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the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.28,25,441.00p (Rupees Twenty Eight Lacs Twenty Five Thousand Four Hundred Forty One Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.08.2025. 15. Copy of this order be given Dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 22.07.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Budh Singh

Case brief

What is this about?

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State Bank of India v. Sh. Budh Singh

Case brief

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What did the court decide?

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